According to a recent report from CNBC, meat industry giant Tyson Foods is in talks to buy Foster Farms, a California-based company that specializes in making frozen foods, branded chicken and turkey.
The acquisition is reportedly valued at approximately USD2bn, although the two companies haven’t reached a final agreement regarding the sum just yet, so the deal could fall through. Even if negotiations are to conclude favorably, a deal is still several weeks away, said CNBC.
Foster Farms was founded in 1939 and remains under family ownership. The company has around 12,00 employees working in turkey production in Turlock and at chicken plants in Livingston, Fresno, Porterville, the Pacific Northwest, and the South. Its products include frozen patties, cooked frozen chicken and turkey, individually frozen chicken and turkey, ready-to-cook, and fully cooked options.
A Foster Farms representative is said to have declined to comment on the report.
Should the acquisition occur, it could signal Tyson’s intentions to refocus on the frozen food and poultry market. Last year, the meat producer acquired Keystone Foods for USD2.16bn, a major beef and chicken supplier for McDonald’s.